Wednesday, May 11, 2011 11:29:48 PM
My guess is it will come from loans and the selling of shares. That's what shares are for after all. I am sure that is the answer you were looking for so I will just come out and say it. I would rather have dilution then loans.
The thing about dilution here is Kim could dilute, and unlike most pinks, the money he gets from the shares will raise share holder value.
If this was any of the top 15 Ihub boards I would not argue with you about dilution. Here, dilution doesnt bother me. Kim is not going to dilute unless he absolutely has to.
My guess is if Kim dilutes we will see more then $5 per diluted share added to the market cap in the first year after dilution.
That is to say if he dilutes 20 million the market cap will increase 100 million as a direct result of the dilution.
Dilution for assets is not a problem. Since the assets would not get figured in for a while the PPS drop would only add to the buying.
I also think any dilution would be through intitutional investment. I would think Kim would sell shares to a bank before he sells them on the open market.
The thing about dilution here is Kim could dilute, and unlike most pinks, the money he gets from the shares will raise share holder value.
If this was any of the top 15 Ihub boards I would not argue with you about dilution. Here, dilution doesnt bother me. Kim is not going to dilute unless he absolutely has to.
My guess is if Kim dilutes we will see more then $5 per diluted share added to the market cap in the first year after dilution.
That is to say if he dilutes 20 million the market cap will increase 100 million as a direct result of the dilution.
Dilution for assets is not a problem. Since the assets would not get figured in for a while the PPS drop would only add to the buying.
I also think any dilution would be through intitutional investment. I would think Kim would sell shares to a bank before he sells them on the open market.
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